Game-changing news for landlords! 😲
Goldman Sachs predicts the Bank of England could slash interest rates from 5% to as low as 2.75% – much faster than expected. This could mean BIG savings for landlords, especially those with buy-to-let mortgages.
Could this be your chance to boost profits and reduce costs? Don’t miss out on what could save you thousands!
Click here to learn more about how this could affect your property investments! ⬇️
The Bank of England is expected to move more aggressively in reducing borrowing costs, which could bring welcome relief to landlords. Goldman Sachs predicts that the Bank will slash interest rates from the current 5% to 2.75% by next year, responding to declining inflation.
The Wall Street investment bank expects monetary policy to catch up with the recent drops in inflation. Goldman Sachs analysts noted that the current 5% interest rate is “notably restrictive,” anticipating that it will fall to 2.75% by November 2025.
This forecast is more optimistic than what money markets suggest, where the consensus is for the Bank Rate to decrease to around 3.5% over the next year.
Inflation in the UK fell more rapidly than expected in September, reaching 1.7%. This coincided with remarks from Bank of England Governor Andrew Bailey, who indicated that the Monetary Policy Committee (MPC) could take a more aggressive stance to lower borrowing costs.
Goldman Sachs suggests that interest rates may fall even lower than market expectations due to "rapidly falling inflation and dovish commentary" from the MPC.
For landlords, this could mean much-needed financial relief. Many have faced rising mortgage costs as interest rates climbed to 5.25% in an effort to combat inflation, which surged to 11.1% in October 2022.
If Goldman Sachs' predictions hold true, the Bank of England could implement consecutive 0.25% rate cuts at its next nine meetings, making borrowing more affordable for landlords with buy-to-let mortgages. This would not only help reduce their costs but could also support cash flow, making property investments more manageable in the current economic climate.
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